sales promotion in marketing
TRANSCRIPT
Sales Promotion
SALES PROMOTION• Sales promotion Marketing activities other than personal selling, advertising, and publicity that enhance consumer purchasing and dealer effectiveness.
• Goal is speeding the sales process and increasing sales volume.
• Produce best results when combined with other other marketing activities, such as advertising.
• Cannot overcome poor brand images, product deficiencies, or poor training for salespeople.
CONSUMER-ORIENTED SALES PROMOTIONS
• Goals: Encourage repurchases by rewarding current users, boost sales of complementary products, and increase impulse purchases.
• Coupons: most widely used form of sales promotion.
• Refunds Or Rebates: help packaged-goods companies increase purchase rates, promote multiple purchases, and reward product users.
• Samples, Bonus Packs, And Premiums: a “try it, you’ll like it” approach.
• Contests: require entrants to complete a task such as solving a puzzle or answering questions in a trivia quiz.
• Sweepstakes: choose winners by chance; no product purchase is necessary.
• Specialty Advertising: sales promotion technique that places the advertiser’s name, address, and advertising message on useful articles that are then distributed to target consumers.
TRADE-ORIENTED PROMOTIONS
• Sales promotion that appeals to marketing intermediaries rather than to final consumers.
• Accounts for half of typical firm’s promotion budget.
• Trade allowances—special financial incentives offered to wholesalers and retailers that purchase or promote specific products.
• Point-of-purchase advertising—display or other promotion located near the site of the actual buying decision.
• Trade shows—vendors who serve the industries display and demonstrate their products for members.
• Dealer incentives, contests, and training programs.
Sales Promotion
ConsumerSales Promotion
Trade Sales Promotion
Consumer market
Marketing channel
Drive immediate purchaseInfluence behavior Goal
The Objectives of Sales Promotion
LO1
Objectives of Sales Promotion
Type of Buyer
Loyal Customers
Competitor’sCustomers
Brand Switchers
Price Buyers
Desired Results
•Reinforce behavior• Increase consumption•Change purchase timing
•Break loyalty•Persuade to switch
•Persuade to buy your brand more often
•Appeal with low prices
•Supply added value
Sales PromotionExamples
•Loyalty marketing•Bonus packs
•Sampling•Sweepstakes, contests, premiums
•Price-lowering promotion
•Trade deals
•Coupons, price-offpackages, refunds
•Trade deals
Tools for Consumer Sales Promotion
Coupons and Rebates
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
Sampling
Point-of-Purchase Promotion
Tools for Consumer Sales Promotion
Coupon
Rebate
Premium
A certificate that entitles consumers to an immediate
price reduction.
A cash refund given for the purchase of a product during
a specific period.
An extra item offered to the consumer, usually in exchange
for some proof of purchase.
Tools for Consumer Sales Promotion
LoyaltyMarketingProgram
A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers.
FrequentBuyer
Program
A loyalty program in which loyal consumers are rewarded for making multiple purchases.
Tools for Consumer Sales Promotion
Contests Promotions that require skill or ability to compete for prizes.
Sweepstakes Promotions that depend on chance or luck, with free participation.
Tools for Consumer Sales Promotion
SamplingA promotional program that allows the consumer the opportunity to try a product or service for free.
Methods of Sampling
Direct mail
Door-to-door delivery
Packaging with another product
Retail store demonstration
B2B -- Trade Sales PromotionTrade Allowances
Push Money
Training
Free Merchandise
Store Demonstration
Conventions & Trade Shows
Trade Allowance
TradeAllowance
A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.
Push Money
Push MoneyMoney offered to channel intermediaries to encourage them to “push” products--that is, to encourage other members of the channel to sell the products.
E.g. Nike gives bonus to sales staff of retailers for meeting quotas
Benefits of Trade Promotions
Help manufacturers gain new distribution
Obtain wholesaler and retailer support forconsumer sales promotions
Build or reduce dealer inventories
Improve trade relations
Forms of Trade Sales Promotion
Kiosk Marketing• Information and ordering machines called kiosks (in contrast to vending
machines which dispense actual products) are used heavily in recent years at airports, stores and other locations.
• Kiosks at Hilton hotels help customers to see their reservations, get room keys, view pre-arrival messages, check in and out.
• Kiosks can read customer data from encoded registration badges and produce useful data that can be printed.
• Kiosks can give people information about the current schemes and sales promotion